Australian Mines has raised capital for definition and extension drilling of the Mt Martin gold mine, 40km from Kalgoorlie in Western Australia.
The gold mine, which has historically generated about 200,000oz of gold, currently contains a total of 213,000oz of gold resources at the Mt Martin deposit and the adjacent Swift deposit.
Dioro Exploration currently owns the Mt Martin sublease, which will expire on 25 January 2010, after which Australian Mines will regain total control.
Australian Mines executive director Brett Young said the mine will now be the main focus going forward for the company.
"Mt Martin already has a JORC-compliant gold resource, as well as several ready-to-drill targets, which will expedite exploration activities at the mine, and is ideally located near to the largest gold mining centre in Australia," Young said. "Funds raised by the placement will increase our cash position and enable us to commence a drilling programme at Mt Martin and Swift following formal handover of the project in January.
"Our goal is to further upgrade the current resource and extend the resource along strike and down plunge in the near term and complete open pit optimisation studies using the improved gold price."
Supervised by Patersons Securities, $910,000 was raised at 0.1¢ from investors including a new cornerstone investor who was given 45% of the placement.
On 24 December 2009, placement shares will be allocated.